Twelve Years Later: How the K-12 Industry and Investment Landscape Has Shifted (Part 2)

Edsurge

Twelve years ago, Amplify CEO Larry Berger and I wrote about the “ pareto distribution ” of companies in the K-12 sector. Most revenue was generated by a few winner-take-all companies, then there was a long tail of subscale operators. Supply of new companies has reached a fever pitch.

The Business of Education Technology

Hack Education

Bust or not, companies across the tech sector, particularly those with high “burn rates” , faced tough choices in 2016: “cut costs drastically to become self-sustaining, or seek additional capital on ever-more-onerous terms,” as The WSJ put it – that is, if they were able to raise additional capital at all. The CEO of Safari Books left the company “ amidst massive layoffs.” These companies almost all share the same investors too.